first is the lincoln bible used by the president four years ago for his initial swearing-in, same used by president lincoln when he was sworn in the first time in 1861 and that will be on top of the king family bible, which is then graciously provided for the ceremony by the king family. excuse me. kelley clarkson will then thing our country to city before poet richard blank a recent original poems written for this occasion. for very excited pitcher will be joining us. he's the youngest ever and not real appellate-- poet. ..

which will take place after the luncheon. >> thank you. as i said i am michelle roberts from joint task force and apical -- are task force had the responsibility for planning and courtney being the military ceremony is support for the now girl activities. once the luncheon is complete, the president come to the first lady the vice president of the second leg will be escorted out to these front of the capital where they will be greeted by mage or general michael lamington the commander of the task force and he will escort

them down the steps to take what is called the path in review in the and the path in review essentially is the presidential escort unit which is comprised of approximately 387 servicemembers followed by each of the service armed guards and the u.s. army band as well as the marine corps band. and they will go past the presidents location on the east front of the capital and once they complete the path in review, then the presidential escort follows the more decayed and then they start the parade route. around the parade route we have approximately 2300 military personnel participating in the parade. there are approximately 10,000 total personnel in the parade and the way the parade is organized there are five divisions in this parade.

each division is led i a service component comcast so division i will be led by the army. division two by the marines, division iii by the navy, division for by the air force, and division five by a mixture of the coast guard and the merchant marines. essentially it is comprised of military bands service elements that represent the active reserve, the national guard component and then followed by various civilian groups that have applied to be included in the parade. along the entire parade route is the military court on. backcourt on his comprised of approximately 1600 servicemembers from all services. for the activities of the capital we have approximately 800 hundred hundred military servicemembers there performing various functions from the

presidential escort to bands to the trumpets and the presidential salute battery as well as ushers in military assistance. it's michelle was to l's middle initial l and then roberts. >> colonel roberts really you know did not give the jacey up enough credit for what they did. it's not just the parade piece. as matt indicated there are people that work on this in our group for months and a year beforehand preparing for whomever is elected in november and as someone who participated in in the macrofor president obama four years ago and with absolutely no idea what we are doing i can tell you that the folks regardless of who the chair is in the folks at gtf are there ready for you when you

walk in the door and really gives a lot of logistical lift on this. is their job to make sure the presidents in print is put on some of these events. one of the ways we do that is in the parade along with all of these military elements there are 58 different groups, 58 different vehicles from all 50 states. they are everything from the virginia military institute across the river of virginia in southern virginia which is marched in another of not grow growth rates all the way through one of my favorites, a group from maine a group of unicyclers that will be joining us and called the gym dandies. and gym in this case. the president will stand and watch the entire thing and enjoy the parade along with thousands of folks who come down and are

watching from along the parade route. one seconds the president goes inside and the official part of his day is done. and he gets ready for the nod robe all. as you have seen reported seen reported there are two would not grow this time. the first is the commander-in-chief's ball and again the commander-in-chief's ball is a tradition started by george bush that we have continued with a chance for us to honor our partners in the military and i know gtf will be included in the selection process for the individuals that will be attending but is mostly enlisted personnel from all the branches. and the second larger and not real ball and i'll be happy to answer questions about about that in a group all as we get into the q&a portion. with that before we go into some of the saturday events, i just wanted to invite her partners from the capital police to talk about about about security not just for monday but for the entire weekend of activities.

>> good morning everyone. i will definitely spell my name for you. the first name is spelled shennell and the last time is spelled antrobus. i'm the public information officer for the united dates capital police. i'm sorry, maam? i will repeat it. my title is public information officer. i am an officer. the united states capital police are responsibility in conjunction with law enforcement partners is to ensure the safety of those attending the natural ceremonies throughout the weekend. first and foremost we want everyone to enjoy the democratic

process and this is tort day. with any event that occurs on the capital complex safety is our number one priority. that said, safety and security for potus, guests etc. is not carried out just by us but by partnership with our law enforcement community that would include but not limited to the metropolitan police, the park police and other entities as well as public safety entities. the partnership that we have established to create a pretty robust multifaceted security plan has been in the works for many months and while i cannot go into details, about those security plans please know that we have trained extensively to address any issues that may come up during the day. thank you.

>> thank you, officer i appreciate that and as someone who is in security and communications before heading back to the campaign last year i can tell you during the q&a the officer had the easiest job because he will get to say i'm not allowed to say that more than anybody else. the main day is monday the day that most folks will be paying the most attention to my comes to the not grow. a couple of other fence saturdays a big day. day. tudor chechens that were started in 2009 by the first family the national day of service and the not grow children's concert. the national day service will be taking place across the country in all 50 states and a large event on the mall. we are very excited. chelsea clinton has joined us this year as the an array cochair for the day of service and she will be appearing at the mall event in the incredibly large tent i am sure you have all seen if you have driven down 14 straight. she will be joined by a number of celebrities and informers including eva longoria beau

biden and -- who i'm excited about for my time in college as well as 100 organizations from all across the capital region that do serve and folks will be able to talk to these people. basically took their type atmosphere, to learn to serve in their communities moving forward. as i mentioned we will also have events in all 50 states. it looks like right now we are in track for over 2000 events across the country and this is the first and not grow committee that is paid for stuff in all 50 states because this is a priority of the first family to see service day both to honor the memory of martin luther king jr. but also in a tradition we hope will live on past this and not grow and be part of the inauguration regardless of who is in our position in four years. wednesday wrap-up on the mall there is one event on saturday evening. that's the children's concert a tradition started in 2009 by dr. biden and first lady michelle obama.

it is an extension of their work that they have done through the forces initiativinitiativ e to help honor and support military families. this will take place at the convention center. we will be announcing details on talent in the next couple of days and put out an initial list of talent that will be appearing at either the on monday night and the kids concert or one of the other. as you can imagine this this isa legit stick a list to get that all pieced together is a puzzle and we hope by friday to be able to announce which acts will be appearing in which places. over half of the audience will be made up of military kids and this is a great place to honor the sacrifice not just of the men and women deserve every day but the families who support them. on tuesday, jumping ahead of what we just discussed, there will be the traditional service taking place at the national cathedral. the first and second family will attend and again this is a tradition that is part of most

and not girls and we will be announcing the run-up show for that in the next couple of days. we are still working with the cathedral on who will be there. the president will attend and it will be a nice way to cap off four days of the public celebraticelebrati on. i think that's everything we have got in terms of the run-up show. i'm sure you all have a number of questions. just nick and sure didn't miss anything in the number of events that we cover. i think that's about it. i am more than happy to open it up to questions at this point and again, i would be remiss if i didn't say thank you to all of our partners as well as our law enforcement partners headed by the capital police and the secret service who have done a fantastic job working with us. >> one item of housekeeping before we get into q&a. if i recognize you to ask a question if you can identify yourself by name and your news organization and the time we have for questions. we will try to get to as many as we can.

see my question is for you matt. you hope to have significant improvements in security as well as for monday. obviously is important that the public get in but i think here we are more concerned with tbi. last year networks could not air due to -- can you expect improvements on that? >> across-the-board that will be improvement in the flow of every type of media guidelines that we will make very clear the movement and i think we have been planning for many months now to accommodate all these individuals for the event and i'm confident that those people will get them. everyone should be on the same page as far as where folks can and can go and i think we are also make king accommodations which will have more details later for folks interested in broadcasting from the capital on sunday around the events happening that day. i think we have a good plan in

place and i think folks should be able to get where they need to go. >> i might add to that not much in the media side but the public side, we do have the advantage of having done this four years ago from the presidential and not grow committee side. a lot of the steps we took were trying to learn from some of the challenges from us time and in fact one of the reasons we consolidated the two into the convention center when four years ago they were spread over 45 locations was in order to decrease our footprint and try to make this a logistically more manageable process for the city law's law enforcement partners and folks attending, so our hope is the flow both in and out of the official ceremony as well as the other events will be smooth and i know jacek put out a great on line tool for the public. they announced it earlier this week. it's a local web app that has to do more with what's going on here in d.c.. it's part of our effort to make

sure that people across the country can be involved in this event. it will have live streaming of the actual event a lot of information on the day of services. it will also have logistical information for people that are attending the event so we are using twitter and other kinds of real-time social media tools hoping to make this a smoother process as possible but also put a plug-in for jcf who has it fantastic residents about their efforts on line as well. i think we have seen a big leap forward in how we are using the media to enrich this event but also to make it a smoother event. >> i was wondering if any of you could address how much and what the cost is for all of the preparations and also in addition to do you know, hispanic people involved with pic, and the other hispanic celebrities or national leaders that will be joining the celebration over the four days?

>> sure. on the cost issue as you can imagine there are a number of individual groups and organizations that go into the so ascertaining an overall cost before the event happens is tough. a lot of these are moving budgets so it's something we'll be payable to speak to more after the event occurs after a talley up some of these bills. in terms of the hispanic committee's involvement of president is committed to making sure all the leaders of other committed to making sure that this is an event that reflects america. i think you you you will see in the paraded number of groups not just from the hispanic community but other communities across this country and we can get that whole list of participants to you that show not just their geographic diversity but also the diversity of cultures and communities that make up this country. as as we mentioned, the not grow public this year for the first time will be a hispanic, cuban-american and the benediction is being given also by a cuban-american this year. and then again i think you will see a number of leaders

attending. e. the longoria is one of the co-chairs of the presidential and not grow committee and is a big supporter of the president during the campaign. i think when you look on the special ds on monday as well as out into the crowd it really does reflect the country. >> and to that point, as far as what tino participation in the initial festivities we did not get into their marks before and but senator schumer invited the reverend luis cortes. he has done a tremendous amount of work to grow the organization to fight crime and poverty and make sure that individuals across the country have access to affordable housing and quality education and senator schumer invited him to open the luncheon with lunch prayer in recognition of his long history of service. >> just really quick, to speak to the hispanic american

community but in shuffling my notes i did miss the fact we wanted to make sure that everyone knew that merely evans williams who is the widow of medgar evers will also be doing the invocation and kicking it off and again this ties into the fact that this is an event that looks back at our history as a country to where the president wants to take us as a country. we think that will be a very nice way to open the event and towards the civil rights movement and part of not only the president's life but also the country's life. >> i just wanted to know how many people are coming and. [inaudible]

>> from our standpoint i believe we are still finalizing the list of individuals who will attend and we will have more information on that in the coming days. traditionally the diplomatic corps has been seated upon the platform and there are 1600 guests that are seated on a platform including obviously the president, the vice president and his family and guests comp that governors house and senate, supreme court joint chief and the diplomatic corps will be there. he is a group north of 150 generally but we will have more details later. >> jim austin with script television. there've been questions raised about the transparency with regard to information that hasn't been released. can you address that? >> the committee regulations has to file 90 days after the not girl takes place. that would include all information on donors and again this is unique to the committee

and the car but in the fcc regulations for us. on top of that we are providing donors on a weekly basis the names of those that have given to the committee. we believe this is a step above and beyond the transparency regulations laid down by the fcc and we encourage folks to go to our web site at this point. >> i said at the beginning i didn't want follow questions. we want to give everybody a chance. >> following up on the donor's, what was your -- and where you have today? >> i can tell you we are in track to meet it. we have every comfort and the resources we need to put on all the events we discussed and feel very comfortable with our fundraising at this event. i'm not going to get into specific numbers. >> you haven't told us anything about the presence and sunday,

about the official swearing-in and what else you would do that day. what will you do for the day of service and -- [inaudible] >> i can answer -- i don't know a number of those so at this point it's not part of the talent lineup. i am not sure where the boss will or won't be. in terms of the president's day on sunday again this schedule is driven by her partners at the white house of there will be questions only they can answer. wanat duration falls on a sunday traditionally, this is the seventh time this has happened traditionally the public ceremoniaceremonia l piece of this is held the following monday which is what we walk through earlier with matt and myself. that being said he has to be sworn in by january 20 on noon -- at noon. there'll be a small private ceremony at the white house with the family and it will be full press so it will be as available for the american people to see. it will be in the blue room from what i understand.

chief justice roberts will be there to administer the oath as well. he will be using the robinson family bible for that, not these two historic rivals used on monday. this is the first lady's family bible. he will do the health and that will be it so it will be a quick and official but very important ceremony. the vice president will do the same thing earlier that day because of scheduling from what i understand. that will be at the vice president's residence again with immediate family. he will be sworn in on the family bible, the same one that will be used on monday that he is four years ago. in between those two they will be doing a simple replaying at arlington. this will be different than the replaying that people are used to seeing the president or vice president do. much more low key affair. it's very simple compared to the one they did years ago. it will be the two of them going out as citizens to lay a wreath

and marked the importance of those that have served this country and have given their lives for this country as we get ready for the public events on monday. as of right now that's the only thing i know that's on schedule from sunday. to be determined. i should have mentioned that. both abide and send the obamas will participate on saturday in some sort of service activity. that will be here in the metro area. we also have a number of cabinet officials participating and we will be making announcements on that in the coming days. as you all know the odds are you'll know when it happens that they will be doing something and it will be the entire family. speeches to. >> just to follow up on the fund-raising question. if you do have leftover funds where do you plan to use those funds, the presidential library? >> you no, i can honestly say i don't know and i know there are rules that regulate what we can and can't do with those funds.

in the past i know some funds were used that were left over less time to help do repairs on the national mall through the association that governs the national mall. that is is a breakthrough across what may come to it that there are a number of civic minded things we will be able to do if we are lucky enough to have excess funds. >> john with cnn. whoever can address this. how many law enforcement agencies and officers will be involved in security on the day of the inoculation and also how large of an area will be closed off the street closures? >> first i want to apologize for saying there was more than one -- this afternoon but to answer your question we cannot go into detail as far as how many law-enforcement officers will be present for the end i duration and could you repeat your second question form a? [inaudible] >> how much of the area will be closed off?

>> we have road closures in effect and i can touch base with you afterwards to provide that. [inaudible] >> with all events that happen on the capital complex we trying constantly to address them. as far specific threats, i can answer that right now but just know that myself -- though not by self, than the united states capital capital place with our law enforcement officers have been trained to address any issues that may come. >> to logistical questions. one is, there are provincials roaming on the mall outside of the capital area. what does that get you that --

[inaudible] second after the ceremony before the parade starts, pennsylvania's lockdown. does everyone have to go around the capital and the lincoln memorial again? steve this won't be a super satisfying answer that we can get back to you with details. we have a team that concentrates on logistics. that was an issue for years ago getting across pennsylvania so in terms of the access issue, my colleagues can follow-up with you afterwards and put you in touch with the right folks. >> just a logistical question. what is your best guess for running time of the ceremony, start to finish and for the parade start to finish? >> i can handle the ceremony portion of the. we expect that the announcements on the platform former will begin around 11:00.

it will take about 30 minutes to announce everyone that will be seated on the platform. senator schumer opens the ceremony at 11:30 and we expect the president will take a oath at about and there will be a couple of -- immediately after that to wrap things up and the final musical act. the procession will head back inside and we hope to have everyone inside it 12:30 or so. the music begins for the pre-program at 9:30 in the morning and vip's other vip's will head out from the platform at 9:45 in the morning. after they not grow speech and the performances at the end we will head back in. [inaudible] >> yes, that's right. we hope to have everyone heading in off of the platform it 12:30. [inaudible] i love the idea of any show that

opens with beyoncé. it will be a rare event for the american people but i can say that parade is the more traditional parade. our parade last year was particularly long or for your cures -- 4 years ago is particularly long. we are aiming for 2.5 but as you know these things can change based on whether and other events. i would also say this parade is a little bit different from what you might see at the macy's day parade. folks don't stop in front of the presidential reviewing stand. this is a moving parade and there are two elements important for planning purposes for media that will be covering it. obviously the presidentpresident ial escort that goes with the lamaze down pennsylvania avenue to the white house. there has been a short break after that before the actual parade begins. is about 20 minutes. this is just so the president first family can go inside and come back out. for the first element of the

military and civilian they will be moving by at the reviewing stand. colonel i think you can speak to that best. >> as you can imagine with approximately 10,000 participants is a huge logistical dance that happens. primarily it will happen at the pentagon working life. they will go through secret service readings, security screenings and get everybody lined up in the proper formations. everybody is in the correct order, and then there are actually logistical teams assigned to each division that are tasked with making sure that they started the proper time, get on the right route and once they get past the white house reviewing stand there are different dispersal areas designated for each of the elements going to the parade so they can get past and dispersed

without log jamming things behind. >> is it towards the white house and the capital? >> right. the. >> the start of the parade is about 2:30? >> yes, sir right. >> are you going to talk about whether contingency plans? [inaudible] >> we do have a whether contingencontingen cy plan. is going to be similar to the inauguration. the ceremonies would be moved inside to the rotunda and that is a decision that the joint committee in consultation with the presidential and not grow committee would make sunday afternoon so everyone as has time to adjust and make plans. >> the only thing i would add to that is that our goal is to have this event go forward or go that

being said we are not going to put anyone in harm's way. the real driver on the decision-making process on sunday will be public public safety. as you all know we were here four years ago, cold is not slow us down so we will do what that is it comes up. each element of this outside of the actual swearing in really are traditions that are important to the president and important to the first family in the country to really show what our transition of democracy is all about. again our hope is to be a will to move forward with as many of these events as possible regardless of what the weather is. >> why the reversal from four years ago with more transparency about each donor. george w. bush gave the amount of each donor.

what decision was made to change that? was that the donors request? would you raise more money by -- >> to be honest on of those were the considerations. my understanding is that we just kind of you know, each one of these is created anew every four years. they're not continuations of the same committee from four years ago. like i said we were lucky enough to have been asked to do it last time and this is a decision that was made in this instance in terms of disclosure. again given the fact that there is the fcc requirement in this while the public dump that this was their attempt to go above and beyond that and add a level of transparency. >> over the weekend and on monday conquer their telephone numbers we can call if we need to check up on something, maybe an arrest or something untoward? who will be available to answer phonecalls?

>> manned, one more time your question? >> if we need to check on anything that has happened out of the ordinary may be an arrest or a demonstration or something we need to check up on that maybe we are not present to see but something to check up on. >> you can call me. i would be the person that -- i will talk to afterwards. just get with me afterwards and i'll get that to you. a fair question. 20 to 224-1670. >> a couple of other things on that, just useful resources. as you pick up your credentials there'll be a media guide in that. that guide is current as of when it into print last wednesday. we are still slaves to the digital age and there will be an on line version available through the pic web site which

is 2013 picked.org that will be updated with information have gotten since i went to print and i would also say we don't have a number handy. we can get it for you. much like the other large national bands like super bowl or other events of secret service coordinates with local and federal, there will be adjoin information set up for security issues and i'm sure there will be staff for someone who can help you out so we will do our best. most of that information should be in that media guide. >> i have gotten a number of questions over the last four days as when the media guide will be available. and that is going to have a lot of background information have everything you will see the ceremony that you have not anticipated and projected and emphasize on those words timeline for the ceremony itself. that's always subject to change based on what happens on monday but we anticipate that as well

as event and all the details about that in her media guide should be public later this afternoon or tomorrow morning. >> that will be in our web web , in our girl.senate.gov and i will make sure that everyone here has an e-mail with the exact link. >> how big are the crowds you are expecting that might come through to this event also would it be easier logistically than 2009? >> the short answer is that the presidential not grow committee does not do crowd projections and we don't do crowd counts after-the-fact. our expectation is that this will be more in line with traditional inaugurals in terms of the size of the crowd. four years ago was a particularly historic event and you tend to get larger if fence when there are changes of power from one party to another and the president being the first african-american president created a lot of interest.

so look, we are excited about this event and there is a lot of enthusiasm around the event that this will be in the size and scope of some of the previous inaugurations. from a logistical standpoint we hope it will be logistically as smooth as possible. all the partners appear as well as a number of folks who couldn't join us today have been working hard to make it as smooth as possible. we do beg folks patience. is a large event at the weather could a cold. i encourage folks to dress warm and be prepared to be outside in and work with us to make this as smooth an event as possible. >> in terms of media participation how many do you see and how many do you actually get out? >> i don't have a specific number but it's thousands. is one of the most well covered events in the world every four years. obviously international significance not just in the united states so we have thousands of media organizations applying for credentials and

matt can speak more to the capital and what they are expecting. we do our best to accommodate those as much as possible. we want this to be as public an event as possible and an event the people here in the united states and around the world can really join in as a symbol of what this country is all about. >> this is a question for brad. there is an interest in how many tickets were made available for the general public. this can sometimes be seen as in-kind work and can you give us a sense of -- to the public? >> i can't give a specific percentage but i can tell you about the universe that that makes a football tickets. obviously a certain percentage were given to the general public for purchase. that is unusual. that has been you need to president obama in this inauguration the past inauguration. traditionally there's not a public sale. this is a chance for us to say thank you to those who have supported the president adequate

staff members and folks that contributed to the president's campaign. also to the volunteers who have worked very hard to make sure that tickets were made available for purchase to thousands or volunteers as a way to say thank you and have them participate in this event. than the commander-in-chief's ball and i touched on this briefly earlier. this is a tradition started by george w. bush and one that president obama felt we should continue. it's one of his favorite parts of the entire inaugural weekend. that will be twice the size it was last time. there'll be thousands of members of the armed forces attending the event free of charge so again, we wish we had more tickets and we would like to include as many people as possible but we have done the best we can to strike a good balance in a fair balance for decisive events and the then send the size of the tickets. >> we have time for a couple more questions. is there anyone who has not asked the question? >> you mentioned that half the

audience will be made up of military kids. [inaudible] >> that is a significant event. it will include majority military family so obviously they will have to be parents there and other armed forces and representatives. i don't have the details handy. mostly schools that have worked with the first lady's office and the white house on various initiatives over the last four years and it's a ticket event. it will be at the convention center but it is free of charge to military families in d.c. school kids. >> on the other ball, that nonmilitary ball, how many people will be attending and would assure it vice that one out today about the open press? what did you mean by open press?

[inaudible] >> it means that you could apply for a credential and we give credential out. there will be a full rights are just like you would see at a speech the president were giving or a campaign type event. in terms of the size we don't know the exact numbers yet. we will be using as much of the capacity of the convention center as possible and again for less time we had 10 official and this time there are two. that is is not attend:2 ratio in terms of this event. we had i believe six that were hosted at the convention center last night. a couple of reasons for that. the main one is one of the lessons we learned last time is that by spreading out her talent we weren't able to program it in the way we would have wanted to so you can imagine if you went to one you would see one or two acts in this way we will have a full program for all the attendees. we hope we have as many x. is

possible for both and if you are you're there you'll have a much richer experience and will also help with crowd flows. i don't know but answers your questions. this is standard procedure for for presidential event. ever thing has to be done for security reasons. [inaudible] >> our panel has agreed to stay and answer questions informally after the news conference and on behalf of the national press club i want to thank them for coming especially on such a busy week for all these divisional's and i want to thank all those that joined us at today's press conference. thank you. >> he has been talking about this dream that he had. he talked about it for years. the american dream and it had become his dream and he had been in detroit just a few months

before. he talked about, i have a dream and america will someday realize these principles of the declaration of independence. so, i think he was just inspired by that moment.

[applause] >> hello everybody. thank you very much to all of you and thank you for including me again in your program. i want to ask all of our d.o.t. team that are gathered here for lunch to stand up and be recognized. please, all d.o.t. stand up and be recognized. [applause] thank you, all. thank you. [applause] i know that trb wouldn't be what it is without the good resources of a lot of are people who contribute so much to the program. i also want to say a special word of thanks to john horsley, tony king and jack basel for extraordinary improving

transportation to improving all that has gone on in transportation for a long period of time. will you help me thank them for their great great work that they have done for a long time. [applause] and i want to thank trb for encouraging young people. all of the young people that are here, the future is very bright. the future is bright in transportation. there will be many opportunities and i know that you enjoyed your lunch and i hope that just rubbing elbows and talking to people in transportation will encourage you for the opportunities that lie ahead for you. and they would not really be available without great leadership on trb's behalf for you so thank you all for being here but more importantly, trb

thank you frank urging young people. when president obama first asked me to do this job, we have a lot of work ahead of us. we were facing the greatest economic crisis in over a generation and our infrastructure was in desperate need of repair. president obama had a vision, a vision of an america built to last. over the last four years we have made unprecedented investments in our nation's transportation system. i have personally visited over 200 cities in america, meeting with local leaders and delivering on what they have told us they needed. we have put people to work on our roads, on honor purchase an honor rails, communities big and small. i have visited every state and

15 countries. and i think as a result, of the work that we have done, that our team has done, with many of you in this room as partners, we have made it easier to easier to write it by, hop on a train or catch a bus. in fact i'm thrilled to tell you about our streamlined approach for the new start competitive grant program. in 2010 we made commitment and a promise they promise to change the way we rated and evaluated capital transit projects of the more good ideas could fit into the federal funding pipeline. i want to especially thank peter rogoff and his team, the federal transit administration, for making this happen in continuing to push it. i'm proud to say he delivered on our promise. our new streamlined approach will ensure that local officials who know best what their communities need and invest in

infrastructure that we need now. and i have said many times before safety is our number one priority. many of you have heard me say thousands of people today boarded planes, buses, trains, automobiles, without thinking about whether the plane was safe for the pilot was well-trained or the train driver of the bus driver was properly licensed or the bus company was properly licensed. that is what we think about at d.o.t.. every day all of us worry about safety so the american people don't have to worry about it. in 2011 the nation saw the lowest number and rate of death on our nation's highways due to safer vehicles, improved awareness of safety and strong enforcement. over the last four years we have worked with our partners who have encouraged people to buckle

up come can't get drunk drivers off the road and we launched a national campaign to stop drivers from using hand-held cell phones and texting behind the wheel. four years ago, very few people knew what distracted driving was. thanks to a lot of energy and time and people working together, we have come a long way. we still have much to do. today 39 states bans texting while driving and 10 states banned hand-held cell phone use. in the skies we are enhancing safety and cutting delays by moving towards nextgen -- nextgen which maximizes the benefit of gps-based surveillance and we improved outdated pilot flight and duty rules to give commercial

passenger pilots the rest they need to operate. in addition to our safety efforts we are fulfilling president obama's bold vision for american rail, laying the foundation for high-speed rail corridors in 34 states and the district of columbia. in california, the nation's first true high-speed rail will break ground this year. four years ago very few people were talking about high-speed passenger rail in america. when the president put $8 billion in economic recovery in the plan that was a billion times more than our country had ever invested in high-speed passenger rail. today it's up to 12 million. the countries that i went to and visited in the first two years of my time in this job, there was a common denominator, a common theme in every country, the national government made

investments in passenger rail. and finally, with president obama's vision we have a leader who has made a commitment in our country in the high-speed passenger rail act. and it's a strong commitment, and it will continue. our goal and their dream is to connect 80% of the country over the next 25 years, our best partners have been governor's, our best partners have been secretaries of transportation. our best partners have been the people with a vision. high-speed rail is about the next generation of transportation for the next-generation. every generation that has ever worked in transportation has left something important for the next-generation. previous generations have left american interstate system the best in the world.

what we will leave to the next-generation is high-speed passenger rail. not for ray lahood but hopefully for my 10 grandchildren. that is our dream and you all have been helpful in realizing that dream. it would not have happened without a vision from president president obama and the investments we have made and we are very proud of this. we want to continue it. been the northeast corridor we have invested more than $3 billion for long-term overdue upgrades in the replacement of vital infrastructure in new equipment. over the last for years we have helped communities invest in innovative projects to make a real difference in peoples lives. under the popular tiger grant program, we invested $3.1 billion in 218 projects in all 50 states. as you all know people come directly to us for tiger.

they don't have to go to the governor, with all due respect to you secretaries of transportation's, it's nice when a mayor can come and talk directly to the secretary of transportation with the innovative creative idea and through tiger we have helped chorus more than any other administrations, we have helped start streetcar projects more than any other administration and light rail programs and walking and biking paths and really helped communities with livable sustainable community goals. that is what tiger has done an congress and congress has seen the wisdom of this. and we believe that tiger will continue for a long time because of the opportunities it provides through innovative and creative opportunities in communities. we are proud of the streetcar project in new orleans,, cut the new hub in denver and a complete revitalization of downtown dubuque, iowa. and now with the signing of a

new transportation bill our tifia loan program is serving as another great resource almost $2 billion over the next two years. transportation infrastructure finance and innovation act provides direct loans, loan guarantees and standby lines of credit for major infrastructure projects throughout the nation. how many bridges are they that need to be rebuilt or built? how many pieces of may chopra structure need to be built or rebuilt? and for a lack of resources, they go one, we believe that tifia offers the opportunity for american cities and our states to again come directly to d.o.t. with creative and innovative ideas. the tifia program made possible 31 projects and turned

$10.5 billion in d.o.t. support into over $42 billion. the leverage that is allowed under tifia is extraordinary. we know there there's a lot of money out there. through the use of the tifia loan program he were going to see some big projects get funded. and the bottom line is that tifia helps her transportation dollars go further. map 21 which was signed into law by president obama less summer transforms tifia the largest transportation infrastructure law program in history, making up to $17 billion in credits available for critical infrastructure projects. map 21 does a lot of other great things for transportation. it includes $81 billion for highways and $21 billion for transit capital investment. provide states and communities

with two years of steady funding to build roads, to build bridges and to build transit systems and it will ensure the solvency of the highway trust fund through fiscal year 2014. map 21 allows us to continue to improve the way the move freight that fuels our economy. map 21 streamlines and consolidates programs and map 21 helps to shorten project delivery a priority for president obama and congress. when we deliver projects faster, when we deliver their benefits faster. like enhancing safety, less congestion and a cleaner environment. the project delivery improvement included in map 21 based on an innovative -- innovation initiative known as everyday counts. they took it from you, victor. you've done a great job with every day that counts. let's hear it for decter menendez and what he has done

and what his team has done. thank you, victor. [applause] the concept behind everyday counts is the same as this year's thp. better, faster and smarter. finally map 21 helps us keep our transportation system safe. this law gives the department for the first time oversight over transit safety. again, a big thanks goes to peter rogoff. in the train crash your and 10, peter and i decided that we would commit ourselves to getting the department of transportation into the transit safety business and thanks to all of his decades of experience on capitol hill, he and i worked with congress to have included in map 21 the ability of the fta to have responsibility for transit safety. we were outlawed from doing it,

and now we will have the authority to do it. this is a real breakthrough. and it really fits her safety agenda. it's long overdue and it will ensure buses, subways streetcars and light rail systems every day are the safest in the world. map 21 provides $2.6 billion for federal safety efforts. the bottom line is we have made a lot of progress. we have done it in cooperation with congress and we have worked with congress to make these things happen. the d.o.t. we will continue to support solid research and innovation. the only credibility that we have at the department is when people look to us to give guidance on safety or other programs. they know it's based on good data and good research. we have appreciated their relationship with their friends at trb.

we only have credibility because of the basis from which it comes, good research and good data. we will continue to use federal investments to create more transportation options for hard-working americans. our future depends on our ability to dream big and build big. president lincoln once said you cannot escape the responsibility of tomorrow by evading it today. well, we are looking at tomorrow and we see what needs to be done. let me just conclude with this. the next big challenge for transportation will be to help congress put together the next transportation bill. now the only reason this map 21 bill is a two year bill is because that's all the money that congress could find. we need more than a two year pill. we need certainty. we need to be able to give the states and transportation

officials all over this country certainty, at five or six erbil gives that certainty. the big debate over the next two years as congress puts together a transportation bill and many of you will be involved in this, is not what america needs. we all know what america needs. if i asked every table here to put together a list of what america needs, the list would all be the same. they would be. they wouldn't be dissimilar. the debate in washington and at america when it comes to infrastructure is how do we pay for it? how do we pay for a five or six erbil? ..

>> we are falling behind, and you know what's going on in asia, china, and other places in the world. they are out competing us in infrastructure because they are willing to put the resources in it. that's where we need to get back to. you need to be a part of the debate. how will we continue to be number one in infrastructure? in billing our communities, in doing what all of you know needs to be done, an in all of the things that we want to do. we need the resources. let's don't become second class citizens. i hope you'll become a part of the debate. if you do, america will be number one again which is where we need to be. thank you for all you do and thank you for being great partners with trb. thank you.

>> we're live where nevada o governor's state of tfhe statea. address from the capitol in carson city governor sandoval was the first hispanic governor in 2010. he's up for re-election next year. we're going to the state house now. [applause] [applause] >> please be seated.

governor sandoval, we welcome wl you to the chambers, and we look forward to your message. thank you. he thank c you.hed membs of t madam speaker, mr. president, distinguished members of the legislature, honorable justices of the nevada supreme court, constitutional officers, senator myellow honored guests, my fellow nevadans, for nearly 150 years, governors before me havey stood in front of this body ande delivered their state of thedre the persal deliv the personal delivery of a alni biannual message has become onee of ourd most honored tradition. i'm proud to be here tonight to continue this tradition along with my wife, the first lady, kathleen, and my three children, marissa, t madeleine, and james. thank you for your love and support.

[applause] i want to take a moment and pause and remember two i had extraordinary nevadans, both of whom i had the honor of serving with in the nevada legislature. genefi segarbloom who devoted her entire life to the service of the state as aate mother, schoolteacher, and study legislator.r son, sator t her son is with us tonight. nevada will not soon forget your mother or her service. thank you. [applause] our friend, senator william jay rasio, lived a legendary nevada life and served in this building with hop nor and --

honor and distinction for over s lega four decades. his legacy is a stirring reminder for those of us in public service.the are there's no barriers to what cann be accomplished if we summon the will to work together.eased that i'm particularly pleased and honored that bill's wife could be with us tonight. [applause] two yetwars ago, we gathered in different time under different circumstances.efore yo ev i u stood before you on that evening, our state was reelingot from the rasio advantages of -- ravages of the great recession. the state had housing foreclosures and personal bankruptcies. statedr revenue projections eve

dropped dramatically and we faced budget cuts in every that evening, i asked the nevada category. that evening, i asked the nevada family to embrace a fundamental course correction. level behind and the limits of e onsiderst the case of the state's future anew.nges of the challenges of the momentompo were too complex to resort to tired partisanship. rather they demanded we resolve to work together to meet the challenges of the 21st century.. able to to the occasion. we were a ble to craft and work together a bipartisan compromisd to led to a balanced budget, important education reforms in a transformed economic development effort. these elements created the foundation of the last two years, progress that every

nevadan can be proud of.pearanc while my last appearance before you is preceded by a period of decline, by appearance before you tonight has been proceeded by a period of growth. yes, growth.he worst we're emerging from the worst economic crisisec onofom our generation, though it remain unacceptably high, the unemployment rate is lower than it has been in three years, and it's fallingand faster than al every other state in the nation. [applause]es are growing state revenues are growing agai because our economy is growing again, and in the last 24 months, nevada businesses have created almost 30,000 new jobs.

[applause] yes, the last two years have sus been a success story, not fully realized, but undeniably on track. e night, ladies and gentlemen, t can confidently port to the people of nevada that the state of our state grows stronger every day. [applause] now we stand at the threshold of another legislative session,ys another 120 days of decisions that will shape the future of our great state. ust ma we must make some immediate a bs decisions, a budget, and other pressing issues of the day, but that is only part of the task before us. our greater challenge is helping

a nevada that's still on the horizon, awaits us in the future, not too far off, but far enough that we must consider what we cancan be. i want us tonight to contemplat a journey that takes us to the other nevada, and i want us to find agree ththat what we find there must be the best that it can be. d trav traveling with us on thaturney journey will be the children you see on thescreens bend me. screens behind me. ese chil these children are all members of the graduating class of 2023. they are second graders today. it is my hope that the faces of ildren will inspire us as we consider both the short and long term realities of our state. two years ago, we began layingv the foundation for improved

education to win a victory for the children, and we did. we passed laws requires evaluations for teachers, ending teacher tenure as we know it, and reinvigorating the state thard of education. these historic reforms werentiae essentialss changes necessary. responsibility for students. sc educators, school boardd govn members, legislatures, and governors. t tohe advance the cause of students, we must now turn our eye to the classroom. i can continue to believe that literacy is the key to long term

success. to take the necessary steps to ensure that every nevada child can read by grade three. [applause] if children cannot read by third grade, their chances of graduating from high school become remote. for pre-three students, i will propose increased nding for most at risk schools. state's and i will ask the legislature to act quickly, because nevada's students cannot wait another two years. [applause] my budget therefore includes an aggressive expansion of all-day kindergarten among the state's most at-risk schools.

$20 million is allocated over the biennium for this purpose. this means that by 2015, almost half of our elementary schools would have an all day kindergarten option. if we expect children to read by thre we cannot continue to ignore all of the data that tells us all-day kindergarten is a critical foundatn foa child's success. my budget matches this focus on young learners with two initiatives targeting older students. of course, we all want the graduation re to improve. and we want students to have skills for work or college after they graduate. one of the most successful programs in the country today is teach for america, a uque corps of brilliant young leaders from america's top universities, who give their time and talent

as teachers in schools that ne em most. thesteachers help spur innovation and creativity in instruction that makes the entire system better. teach for america has helped make a difference in the lives of hundreds of nevada's students. but we can do more. i am proposing a new investment in teach for america to help place top teacher and leadership talent in nevada. am also asking that nevada make a firm commitment to another national program with proven results. in the last year, used available funding to pilot the jobs for america's graduates initiative in seven nevada schools. jag helps prevent dropouts by putting a specialist in the school to work with the most at-risk students. the work continues even after

the students grae, and transitions students from high school to college or a career. it works in over 30 states and it has worked here. with me tonight in the hall is dayton high school jagdent joey doyle and his jag advisor, nancy gardner. [applause] joey grew up in challenging circumstances that most of us can on imane. despite these challenges, ey made a conscious decision to tu his lifaround, and with the help of good friends, mentors, and the jagrogram, he is now a senior at dayton high

school on track to graduate. [applause] joey has told me's proud to be a member of the dayton high school jag program, and joey, we are proud of you. my budget includes sficient resources to fund the jag program to include up to 50 additional high schools by 2014 and to serve nearly 2,000 additional high school students. to all our current jag students and specialists, thank you for setting an example across the state. [applaus [applause] as we make these investments, we must also recognize how vada

has changed: our schools are more diverse. more than 15% of nevada's students are english language learners. the clark county school district alone is responsible for more than 50,000 english language learners, representing more than 150 languages. thchallenges these students confront are wholly different from those faced by their peers, yet our obligation to them is no less important. reality dictates that we acknowledge that reading levels, grtion rates, and college readiness will not improve until we appropriately focus on these students. to lay the first plank in building a stronger foundation for these students, my budget proposes $14 million for an enish language learners initiative. [applause]

i will continue to fight for more school choice. many students attend schools that are not mting their needs. we owe them and their parents additional choice as well as individualized instruction. i will introduce an opportunity scholarship bill giving businesses a t credit for making contributions to a scholarship fund. these dollars will be distributed, on a means-tested basis, to students at low-performing schools for use in attending the school of their choice. [applause] all in, the proposed budget includes $135 million in new investment in nevada's schoolchildren.

[applause] as parents and taxpayers, we have a right to expect a return on that investment while nevada's teachers wi be supported through the most effective professional development, elevated student performance requir an outstanding teacher in every classroom, and an outstanding principal in every building. nevada is on the cusp of implementing a system that will transform the way we evaluate our state's teachers and administrators. but we need to take the next step. my budget includ an appropriation for a data system that links student performance to teacher effectiveness. this system is a long term investment in what will be the babone of our approach to teacher evaluation. it will ensure that parents and

students have the teachers they deserve, and thateachers are evaluated fairly. i believe the future of nevada's students is bright. we've already seen progress, not just in passing reforms, but in improving outcomes fortudents. thanks to our educators, last year graduation rates in clark county rose, third graders in ca washoe county posted their highest reading scores ever, and high school matsh and science performance across the state increased. [applause] . i know that we have many of our state superintendents in attendance, please. if you would please rise and be recognized for t hard work that you do. [applause]

these are small steps, but they're steps to buildn, and we will. wh we can never do though, is fall backwards. my pledge to parents, students and educators is to always move ahead. of coue, our efforts to improve education cannot focus only on the very young. the nevada system of higher education has been an important part of our state's success since its founding. and it has become an even more important player in our economic development efforts. i am pleased and honored to have the hancellor, both as a member

of my cabinet a as an active member of the state economic development board. mr. chancellor, i know you're here. if you'd please stand. [applause] with the chancellos support, we are creating new courses of study at unr and unlv focused specifically on the sectors we are targeting for economic growth. unlv is working with my office of economic development to establish unlv as the global intellectual hub for gaming, hospitality and entertainment. i am also proud to annoue that funding is included in my proposed budget to begin the planning and construction of a new hotel administration school at unlv and a student achievement center at r. [applause]

our community colleges are also meeting the challenges of today and tomorrow. we are pairing the community colleges more closely with our workforce needs so thathey can deliver students into jobs that wi be iting fothem in the new economy. and, perhaps most importantly for the lives of thousands of current nevadaigh school students, my budget again contains an appropriation to support and extend the kenny c. guinn millennium scholarship through 2017. [applause] i wod like to take a moment to

inoduce former first lady dema guinn who is with us tonight. [applause] dema, i give you my solemn promise, that as long as i am governor, there will always be a kenny c. guinn milleium scholarship for nevada students. [applause] a quality education is the fountion of economic growth, the key to improving quality of life in our state. however, the modern economy requires more than investment in education to broaden economic economic development, getting nevada working again, has been

my greatest priority over the past two years. we've completely oveauled the way nevada approaches economic development. we have workeds one, democrat, republican, independent, north and south, urban and rural, to improve the economic conditions facing nevada families. two years ago, i promised that with a renewed focus and with your help, nevada businesses would create 50,000 new jobs across nevada in four years time. as i stated earlier, we are more than halfway there. nevada's employers have created near 30,000 new jobs in the last two years. d in october-november of 2012, nevada's job growth was the second strongest in the nation. [applause]

in addition toompanies like zappos, we are now seeing dozens of other companies coming to nevada, like apple, urban outfitters, now foods, xtreme green, romotive, and ameriprise financial. they bring with them capital investment and good paying jobs with benefits. many other businesses are in the pipeline to start up or expand in nevada, thanks to the work of oustate and regional economic development teams,nd the business environment we have all created right here in the great state of nevada. [applause] we have made great progress, b our task is far from over. while we aggressively pursue new businesses outside our borders, we cannot forget the businesses that are right here in nevada.

we all know, we know, nevada employers continue to struggle with the aftermath of the great recession. to assist their recovery, my budget provides $25 million in further tax relief from the modified business tax for an additional 2,700 businesses. [applause] that means tt since 2011, we will have eliminated the burden of this tax on almost three-quarters of nevada's small -- businesses. [applause] let me be clear. nevada's employers cannot afford higher taxes, and i will not support them. [applause]

u and i know that we must continue to address the unemployment in our state, and we must deal with the economic realities thrust upon us. too many of our iendand neighbors are still out of work, and at 10.8%, unemployment is still much too high. against this backdrop, many programs have required modernization, and even the job description of governor has changed. i have led trade missions to and, missions to mexico and israel are planned to expand nevada's global footprint. i am committed to leaving no stone unturned, no road not taken. we must also invest in our nevada's innovators and entrepreneurs. and tonight, i am proud to

announce that we will commit $10 million to nevada's knowledge fund to do just that. [applause] for rural nevada, we have also plac an item in e budget to support the university cooperative extension program. we are moving forward on nevada grown, an effort to help provide nevada farm products for nevadans. [applause] and funds to market rural nevada tourisare also increased. [applause] and, we are moving frd with our sage-grouse management plan,

to show the federal government that we can manage our own lands and limit further federal intrusion in our lives. [applause] to help vada businesses even more, we will also restructure the nearly $703 million nevada oweso the federal government used to pay unemployment benefits to nevadans who were out of work. thistep will save employers $9 million, stabilize the rate paid by businesses, and ensure that the entire amount is paid off by 2016. [applause] we will also work on project neon, a major new highway project that will meet the most critical transportation needs of

sohern nevada. project neon is rhaps the largest public works project in nevada since the construction of hoover dam. [applause] it will completely modernize the infrastructure of southern nevada's transportation grid and ensure that our commute is safer and more efficient for decades to come. [applause] nevada must continue to lead in other ways, and no opportunity is as rich with promise as our primary industry, gaming. nevada was the first state to lelize and regulate online gaming. in the absce of federal action on this issue,evada must continue to lead. the nevada gaming control board

will bring legislation to eliminate nevada's statutory barriers to interstate online poker, and ask for authority to enter into interstate agreements. nevada has always en the gold standard of both gaming regulation and operation, and i intend to see to it that our state will lead the world into this new frontier. [applause] other states are moving quickly on this issue, and i respectfully ask the legislature to pass a bill within 30 days. the promise of these ideas is real. exciting.e to novate is but even as we work to modernize our economy and set a new cour ward a brighter economic future, we must address the consequences of the prolonged

economic downturn. last month, i announced that nevada would comply with the provisions of e affordle care act as they related to the expansion of medicaid services. as a result, some 78,000 more nevadans will now have coverage, without facing the new tax penalties imposed by the affordable care act. [applause] the federal law allows us to shift mental health and other state spding to medicaid source saving the general fund nearly $25 million over the biennium. over the next six years, this comphensive approach will create up to 8,000 new healthcare jobs and inct over half a billion dollars into our state's economy.

and, as i've noted before, we must reduce taxes on businesses to help them bear the increased costs of the affordable care act. but, the issue of long-term health care costs remain. as such, i believe we must ask certain medicaid patients to make a modest contribution toward the cost of their own ca. and i will insist that nevada be able to opt-out of the medicaid expansion program in future years, should circumstances change. [applause] beyond medicaid, my dget provides additional funding for our state's most vulnerable citizens. it includes more support for autism and early intervention services, piloting 24/7 mental health care in southern nevada, and increased community based services for nevada's disabled

and senior citizens. [applause] we have all been touched by the housing crisis over these last few years and nevadans continue to strgle with home foreclosures. last year, thousands of nevadans attended a free housing asstance event in las vegas, sponsored by our own department "home mns nevada." ustry, called at the comprehensive event, over 250 presentatives from banks met with homeowns and provided help on the spot. while many nevadans received assistance at the evt, we must continue to do more. working with attorney general katherine cortez masto,

my administration will use multistate settlement funds to assist nevadans who have bee hardest hit by the housing crisis. we are obligated as leaders to find ways to keep people in their homes and families together. and i will use every available means at my disposal to protect and help the people who fight every day to stay in their most importt possession, their home. [applause] the recession has hurt the entire nevada family. state employees have seen their pay cut and have been requed to take unpaid furlough days. tonight, i am announcing that we will be able to provide some relief tthem as well. merit pay will be restored for state employees beginning on july 12014, and the number of required furlough days will be cut in half as of july 1 of th year. thank you to all state

employees. [applause] there is another group that deserves our attention and respect, our veterans. the men and women who have served our nation in t wars are coming home. tonight, i ask you to join me in remembering those who have made the ultimate sacrifice and those who have not yet returned. over 300 nevadans remain deployed with our army and air national guard, and many more of nevada's finest are serving in uniform at home and abroad.

with us tonight is one marine recently returned home, a reminder of all those who remain deployed, gunnery sergeant ben stryffeler. [applause] i had the privilege of meeting ben two years ago. since then, we have twice

chatted over breakfast about his life and military service. begraduated from carson high 17 years ago and immediately enlisted in the marine corps. since then, he has served his country with dignity and honor, being deployed four times to iraq and afghanistan. ben returned home from afghanistan a little over a month ago after serving engaged in heavy combat.any that gunnery sergeant stryffeler represents the best that we can be. ben and all the men and women of the military deserve our heartfelt gratitude and respect. thank you, ben. [applause]

in honor of those who servin the armed forces, my budget contains funding for additional veterans service officers. anit also includes money to begin the first phase to build a new, stand-alone veteran's home in northern nevada, to complement the veteran's home in boulder city. [applause] nevada cherishes its veterans, and these resources will help ensure that our service members receive the benefits they deserve. we o the men and women who serve our country nothing less than total victory. [applause]

ladies and gentlemen, by doing all of these tngs, we are laying the groundwork fothe future of our children and their families. they are the foundation of my dget and will continue to be the primary focus of my administration. my executive budget that will be transmitted to the legislature tonight represents general fund spending of approximately $6.5 billion for the next two years, which is modest increase over my last budget. caseload growth in health and human services drives much of this increase. my commitment to k-12 education has also ireased spending for our schools. but we must only allow for growth that our fragile economic recovery can bear. in this budget, we've reduced the tax burden on local businesses, we've addressed increasing caseloads and we'

begun to diversify our economy. the social service net is stronger. support for education is increased. and nevadans will continue to benefit from the over-arching policy of this administration throhout this economic downturn, that is, we cannot cut our way out, we cannot tax our way out, we can ly grow our way out. [applause] as nevada prepares to celebrate 150 years of statehood, we must also csider how far we have come and prepare for what lies ahead. 2014 is not just the anniversary of nevada's statehood. it also marks the centennial year of the approval of women's

suffrage in our state. nevada gave women the right to vote in 1914, five years before the rest of the nation adopted the 19th amendment in 1919. [applause] it is my hope that the celebration of women's suffrage and the commemoration of nevada's 150th birthdawill provide joint platform for examining who we are and who we can be. nevadans are rightfully prouof their history. we are also cognizant of the world around us. and we are ever mindful of those studentshose faces inspire us to plan big for a bright future. tonight, we can take pride in our progress

the table has been set by economic improvements, and we can now see a light at the end of the tunnel. but problems persistand they demand our attention. such is the current context in which i have come before you tonight to describe the budget and the policy agenda placed before the 77th session of the legislature. it is a context of improvement, realism and yes, optimism. it is a context in which we are cast again in e role of problem-solvers. my plan represents the next phase of recovery and rebuilding. night, we prepare to embark on a legislative session that i hope will set an example of bipartisanship. two ars ago we gathered in difficul and confronted a time

of triage. then, we were consumed by the effort sply to stop the free fall. tonight, we come together to further stabilize our state and its future.ger foundation for [applause] from the vantage point of this new foundation, from the watershed moment of our 150th birthday, we can cast r gaze to the horizon, to the world we want for the graduating class of 2023: an educated and healthy citizenry, a vibrant and sustainable economy, safe and livable communities, and an

efficient and responsive state government. [applause] each step we will take, indeed each of e many steps taken over the last two years, is coming together to reveal a map of promise and opportunity. and i know in my heart it will guide us, not just where we want to go, but where we must. i am proud to serve as your governor. i'm proud to call nevada my home. god bless all of you, god bless the great state of nevada, and god bless the united states of america, the greatest nation on earth. thank you. [applause]

[applause] on the fcc agenda. in an hour, the head of fema craig fugate because of budget constraints states should not expect significant federal aid after the disaster. the head of the federal reserve bank of dallas on what to do about institutions considered too big to fail.

in the morning former senators kent and jeff discuss the debt and deficit reduction. at 1:00 p.m. eastern the national immigration forum hold a news conference focusing on immigration legislation. speaker scheduled to include tom of the u.s. chamber of commerce and carlos. he had been talking about this dream he had. he talked about it for years. the american dream then it become his dream. america will someday realize the

principles and the decoration of independence. inhe was inspired by the moment. sunday on after wards he recalls the journey of the civil rights activist participating in the march on washington. part of three dais of booktv this weekend monday featuring authors and books on the inauguration, president obama, and martin luther king, jr. now a look at the agenda for the security and exchange commission. fcc commissioner dan gallagher spoke at the u.s. chamber of commerce for an hour. [inaudible conversations] [inaudible conversations]

good afternoon. thank you for joining us. i'm david the president and ceo market here at the u.s. chamber of commerce. the team i'm fortunate to work with and lead here was formed over six years ago before the financial crisis. at the time on a bipartisan basis, a grouch folks that we had commissioned together told us that the financial regulatory structure that served the country well for 75 years was no longer working. it was out of date, that there were too many gaffes, too many layers and somebody should get around doing financial regulatory reform before the next crisis. shotly thereafter the crisis happened. and the need for financial regulatory reform became even clearer to the american people. i wish i could tell you the dodd-frank, the major financial

regulatory had achieved everything we hoped when we formed the center. certainly it did some of the things that needed to be done. despite over having 400 required regulations across 21 regulators. pop quiz to anyone that can name the 21 agencies in charge. it did nothing. some areas it's simply fell short and in other area it is didn't act at all. so that we are two years in to it. we will propose shortly in february what we're calling our fix ad replace agenda. areas that need to be fixed because they're not working as intended. areas that needed to be added because they weren't properly dealt with. it's important to remember that when congress first dealt with the financial regulatory reform. they didn't do it in one bill. they had several times to get it right. finally areas need to be

replaced because they can't be made to work and chief the goals intended no matter. why do we do this? we do this because financial regulation impacts the way every american company whether small, medium, or large company start-up work mature or private or public, public and intend to go private or vice versa or growing or trying to turn around a firm. use and need and access capital. whether you're a small company trying to max out a credit card to bite first piece of equipment or hire the first employee or a larger company tries to launch a product a new product to go to a new market. you depend on financial regulation to be right. and have a level playing field. in fact every way that companies of every shape and size use the financial services industry is impacted bid to frank. we talk about the needs of

capital public or private credit and access to credit. that's why the work of the consumer bureau are important. the way companies manage risks and the ability of nonfinancial firms to manage their financial risk whether it's interest rates or currencies. so call derivative bucket. and that role the fundamental role the money market mutual funds pray to help the companies manage the day-to-day liquidity. all the things are happening at the same time and the change are sit. it's important we get right. it's not question whether it should be more or less. it should be, you know, we call it right way or wrong way. how do we make sure we did get it right. the definition of getting right is preserve the most diverse sources of capital job creation and the american economy. today we will hear from fcc commissioner dan gallagher who i

think is a well positioned to lay out an agenda for this in the next year. at the commission gallagher brings a unique combination of backgrounds. first he started out in the real world as a general council for a full-time services firm -- financial services firm. then joined the staff of commissioner paul atkins and worked for commissioner. worked for the at fcc as deputy directer and one of the largest division. the division trading market and been on the senior professional staff and in private practice and about 1 months ago confirmed by the u.s. senate as security exchange commissioner. everybody who knows him will tell you flee things. first, he's substantially smart. he understands the complex issues. second, he is has an ability to

see another person's perspective and find consensus and really make forward progress on issues and understand that you can achieve consensus while still remaining true to principle, and finally that he is a great person to work with and somebody that folks enjoy interacting with. for the reasons and many more. we are delighted to dan gallagher here today as the keynote speaker. dan. [applause] >> thank you, david for that kind introduction. it was just fourteen months ago since i gave my first speech here in the building. it seems like yesterday but i think the speech shows how important it is for fcc commissioners to get out and about. i'm pleased to be here addressing such strong supporters of the american

global leadership in capital formation. which is one of the foremost goal at the commission. before i continue, i must tell you that my remarks today are my own and do not necessarily represent the view of the commission or fellow commissioners. you're about to find out why. [laughter] as i'm you're aware, next monday, the nation will observe both the inauguration and martin luther king, jr.'s birthday. what you may not be aware of it marks the two and a half year anniversary of the enactment of the dodd-frank act. to commemorate the occasion, i'd like to take a few moments to talk about the act. specifically the misallocation of resources and opportunity costs that have risen from the many assumptions underlying the act. and how they continue to impact the commission's everyday efforts to maintain fair,

orderly, efficient markets and facility capital information. you can say this about the dodd-frank act, it's a perfect example of not letting a good crisis go to waste. indeed it's a model of the new paradigm of legislation. a poor concept in this case regulatory reform overwhelmed bay grab bag of wish list items. what continues to amaze me about the act is not only what it covers in the 23019 pages but the crucial regulatory issue it is doesn't address. the juxtaposition of the two is quite frankly jarring. the act passed the fcc with a mandate to create unprecedented new disclosure rules leading to conflicts from congo. but not to reform money market mutual funds, which we were later told are ticking time bombs of sis timic risk. they extrand payments made by

u.s., gas and oil companies. but leave the reform of freddie and fannie for another day. it structures the infrastructure by establishing -- not to mention the consumer financial protection bureau. but failed to eliminate the redundancy of having the fcc and cftc share jurisdiction. dodd-frank creates the system of regulation for so called -- [inaudible] or sigh fie to some in the crowd. but does not address the shortcomings of the short term funding model of banks that continued to be too big to fail. the dodd-frank act attempts to solve the financial crisis, illustrates the peril of false narrative. justifies the mandate as answers and only after asking the wrong questions.

i suppose that there shouldn't be a surprise given the statute was not the product of bipartisan comprise, and was enacted shortly after the onset of the crisis. many months before the body charged with examining the cause of the crisis issued the reports. it was a markedly different approach that night deliberative process undertaken after the 1929 stock market crash. in total, the dodd-frank act contains approximately 400 specific mandates to be implemented by agency rule makes with approximately 100 of those falling onment fcc. they adopted final rules implementing nearly a third of the statutory mandates and continues to -- completed requiring study and implementing new rules. the result has been a dramatic increase both the volume and pace of fcc rulemaking. as i said in the past, there's no exaggeration to say that the

commission is handling ten times the normal rulemaking volume with normal being the orbing late level of activity. the marked increase from the pace before that enactment. as a result, the fcc like other regulators is now dealing with the problem of rushed, inadequate rule proposals that were pushed out in a bid to meet arbitrary congressional deadlines. as you might expect with it isn't easy to promulgate high quality rules from faulty proposal. the vocal rule serves as a case in point. increase pace races two cents of concerns. the first stems from the difference between getting rules done and getting them right. smart regulation requires taking the time to understand the problem that nodes to be addressed including not only the proximate mate cause of the problem, but also the often complex and hidden factors underlying that problem. it's at this stage where the

perm of falser intive at the greatest. for incorrectly eyeing the -- identify the cause of the problem by jefer simple if iing complicated issue makes fighting -- finding the right solution far more difficult. it should go without saying that we need to ensure that we are performing a rigorous cost-benefit analysis of all rules whether proposed or final. the second set of concerns centers around the concept of opportunity costs and the miss allocation of limited resources. i have no doubt that the businesses represented by the chamber understand the concept of limited resources and need to set clear and sensible priorities far better than does the federal government. every hour spent by the fcc staff on drafting rules or carrying out studies to implement dodd-frank man taits representing one less staff hour spent focusing on the commission's core regulatory

responsibilities. i'm not here to enumerating the flaw of the legislation as a whole. i've been a lotted thirty minutes. not thirty days to speak. i would like to spend a few moments using the rule to illustrate both sets of concerns. as i'm sure you know, the dodd-frank act requires three federal banking agencies, fcc and the cftc to adopt rules to implement two significant prohibitions on banking entity and their affiliate. the prohibition on engaging propry tear trading and prohibition of sponsoring, investing, and covering funds such as hedge funds and private equity funds. it identifies certain things.

the fcc issued a proposal in october 2011, weeks before i started as a commissioner, i'll point out. with the cftc following in february of last year. fifteen months later, the rulemaking remains at the proposal stage with ongoing talks between the agencies aiming to address the myriad concerns raced in -- raided in over 18,000 comment letters regarding the dire presumely unintended consequences they argue would result from the proposed implementing regulations. and yet, and i quote, if you look at the crisis, most of the losses that were material for the week institutions and the

strong relative to -- and the strong relative to capital didn't come from those propry tear trading activities. they came overwhelmly from what i think you can describe as classic extension of credit. those aren't my words. treasury secretary geithner spoke them in september of 2009. in case secretary geithner merely misspoke. i'll provide another quote from a different speaker this time march 2010. the commercial banks was there but not central to the financial crisis. that speeching paul volcker. don't get me wrong. as illustrated by notable hedging failures last year, bank trading and hedging practices can be a whale of a problem. it's not a problem the volcker rule the dodd-frank act as whole proports to address. like. of the act it's a solution in search of problem. the act, however, is still the law of the land. and banks with long since

accepted the rule and implications for their business activities. in fact, i've been told by several firms that although the implementing rules have yet to be finalized they have taken significant steps to sheet down the u.s. trading activities and in some cases have already done so completely. high level staff from five regulatory agencies continue to work behind closed doors to refine a rulemaking proposal that according to a letter sent to the agencies by bipartisan group of six senators, quote, has drafted but effect main street business by reducing market liquidity and increasing the cost of capital. in another comment letter, senators murkily and levin have strong supporters wrote, the

volcker rule demand wall street changes culture. implemented in smart way it can protect the u.s. economy and taxpayers from so. greatest risks created by the nation's largest financial institutions while providing plenty of space for the financial institutions to provide the plain, low risk client-oriented financial services that help the real economy grow. they are a lotble goals. almost unformally critics argue it's the very plain mainstream customer facing products that will be harmed. not necessarily by the text of the volcker rule as set forth in the dodd-frank act, but by the draconian interpretation of the rule at the october 2011 proposed rules would impose on the financial industry and their customers. notably, our foreign regulatory counter parts in europe, canada, and japan have been some of the

fiercest critics of the prosed implementing rule. i had the fund last week to meet with regulators and industry participates in u.k. and ireland where i encouraged a -- encountered a distinct lack of enthusiasm for the volcker rule set forth by the u.k. independent commission on banking and e.u. indeed, sir john vickers, chairman of the independent commission has already criticized the u.k. coalition government for backing away from his original proposal. while the european commission's summarize -- in a charmingly understated fashion stating in general in banks welcome the group analysis but argue that a compelling case for mandatory space of trading activity hasn't been made. they felt it wasn't back by the

required evidence and there was a need for a thorough impact assessment. with all due respect, to my friend in the european financial regulatory community, when a regulatory proposal is viewed within the e.u. as being too harsh on the financial industry i think it's a clear sign it's time take a step back and reevaluate. regardless of what happens with respect to the vickers or like end proposals, even if all of the most allegations wall street's harshest critics are set -- even if they act out of self-interest. the financial institutions know that the volcker rule is not going away. as such, they have already begun the process of determining which of the activity will be prohibited under the rule as set forth in the text of the dodd-frank act and proactively moving to shut down their truly

propry tear trading desk as appropriate. accordingly, as i friend and colleague troy and i have stated the final regulations implementing the rule should for the most part be a codification of what most banks have already done in sphonts requirement set forth in the legislative text. the crit ticks of the -- critics are no longer, if they ever did realickistly contemplating repeal of the volcker rule. they simply want us to get the implementing regulations right. the october 2011 proposal fails to accomplish this goal. by focusing only on the latter part of senates call for implementation of the act in a smart, vigorous way. operating on narrative the bank's propry tear trading -- the proposal -- it throws out

the baby with the bath water along with the rubber duck and plumbing as well. [laughter] to determine which of the practices institute trading and which are said customer facing activities providing liquidity and reducing the cost of capital. it stretches the definitions of covered activity when it almost punitive basis as if based on a assumption that any trading -- illustrates the second set of concerns opportunity clauses in the misallocation of resources. the entire rulemaking exercise so far has been carried out in a

marijuana that is -- manner that wasted the resources of the agencies involved by every account the bank regulators have taken the lead role throughout the rulemaking process. plume belie it -- vast financial firms regulated the bank company by the bank regulators. coupled with the nature of interagency rulemaking. the activity the trading and hedging practices fall within the core competency of the fcc. for example, the fcc built an extensive library of rulemaking and interpretive releases concerning exception for bona fide hedging or market making in the short sales.

those exceptions which date back built upon the bona fide hedging exception. promote the efficient allocation of capital for decades is playing a secondary role in drafting regulations to implement the rule. and all of this comes with a cost. both the commission staff playing second fiddle and the banking regulators struggling to convert the widely proposing release to workable regulation could be focusing on other matters rather than spin thairg wheels. simply put it could be spending our time in a far more productive manner.

focusing on mandates that are important such as those in the jobs act as well as addressing the basic blocking and tackling. indeed one personal frustration of mine has been the inability to fully implement what i believe is the most useful and important provision of thed dodd-frank act. they remove the references to commission registered credit rating agencies. they are responsive to one of the problems in the financial crisis. that was overreliance on inaccurate credit ratings by investors and regulators. yet the most important rules don't include such references. meanwhile f sock charged with averting the next financial crisis is spending more time of

hectoring the commission. on the reform of money market funds and issue that falls directly and solely within the commission's fear of responsibility but somehow not important enough to be addressed in the dodd-frank act. then they are nows canning on the bubble that have the foacial cause another crisis. on the issue of money market funds, i'm happy to report that craig lewis and the fine staff in our economic analysis division have completed the rigorous study and economic analysis that a bipartisan majority of commissioners have long ago asked for in advance of considering new rulemaking. we're currently working with the economic analysis staff and the division of investment management to shape the reform proposal based on that rigorous economic able sis. and separately, when encourage by chairman walters commitment even as we continue to implement the dodd-frank jobs act mandates

focusing as well on the every day four blocking and tackling issues that effect us most. in the coming month, i look forward to working together to address the commission's priorities both short term priorities, such as the long overdue amendment to the net capital and customer protection rules commonly referred to -- and longer term ones such as engaging in formal, they thorough evaluation with the equity market structure issues. for all the talk i believe notwithstanding our party and policy differences, this commission is fully united in the desire to carry out the commission's mandate to protect investors, maintain fair orderly and efficient market and facility capital information. with a clear data and analysis base understanding of the

problem we face, and complexity of the underlying causes coupled with the deliberate measured allocation of our resources, i believe that the commission can establish great things. and can avoid the mistakes of the past over the course of the coming year. i thank you for your attention as well as for your commitment toed advancing our nation's global leadership and capital formation by supporting capital markets that are the most fair, efficient, and innovative in the world. i'd be happy to take any questions you might have. [applause] ly ask if you can have a question raise your hand. we'll bring a microphone to you. wait until the mic comes to you. the first question comes. let me start with a question on one of the topics you covered which is money funds.

you clearly laid out that there is a strong consensus among the commission to do things that would strengthen the product without destroying a product from our perspective fundamentally is important to the large segment of american business. in fact, the fsoc is proposal has kind of, you know, clearly state the importance of money funds and lay out the ways to kill it. the fcc will rei be able to reassert the jurisdiction. you indicated among the things you willing to consider would be a floating and net asset value. but the enormous complexity and implementing the floating value such as the tax accounting and operational challenge. can you say more about what you're thinking in that area. >> yeah.

now that i have a voice again with the water. i'm a little jet lagged and a cold. i can't hold me back. yes, i think money market funds will be one of the primary issues that the commission tackles in the coming months. in are issues that need to be

addressed despite the fact the proposal has been lorded about the industry for four or five years. so on the accounting front, i'm hopeful that as the commission is has plenty authority over the accounting standards in the united states we can figure something out. if we can't, we're in more serious trouble than i thought. on the tax side, obviously with fsoc's interest in the issue and the treasury secretary being the head of the fsoc and irs within treasury i would hope and expect we can find ways to mitigate if not fully resolve the issues. on the operational side, obviously, that's something we have to work with the industry. i think that's something we can learn a lot about through a notice and comment process. i think it's something we take seriously. but i'm encouraged to see that over time, you know, we have gotten the engagement from industry. we heard discussion of certain idea that give them credit for out bit they ran in the journal about the path forward. i think it makes a lot of sense

if we ended up there. hopefully soon here see a proposal coming out of commission. something more tairl from the industry we have seen before. and, you know, when you put together a proposal as we had last year. death by hanging death by shooting. it's easy to see you get the level of copy. you can't have the breakthrough like we've been having recently. >> questions from the audience. right here. >> if you can introduce yourself. >> yes i'm john. thank you for speaking today. my questions about touch on the money market rule but more on the fsoc authority itself. where does the financial stability begin and end? over this rule and other things

that the fcc deals with? can it come in and intervene any time it doesn't like? what the fcc does or doesn't do? >> it's a great question, john, not being a member of the fsoc personally, i can't tell you i know anything from behind closed door. the statute tight one of dodd-frank in establishing fsoc make clear that the members are the heads of the constituent agencies. so the chairman of the fcc a member of fsoc the rest of the commission is not which i believe is an issue of i.t. and to the legal authority in title i, you know, my understanding loosely is that they need to when they identify certain risk they have taken what they call the 120 group, can is to put out a proposal when the primary agency some for the matter hanl done so. and then when they get there

comments back and decide which they want to take they can sent it back to the primary agency, in this case the fcc telling them to do as instructed. to take an alternative, or do nothing but explain ourselves. i'm hoping we never goat strange on money market funds. we your question raises a much larger issue which i think i alluded to in the speech about the independence of the constituent members especially the so-called independent agencies. and, you know, how independent are you if fsoc can drive your policy. money market funds because they did have a role in the crisis with the breaking of the primary fund reserve fund obviously it speaks more to sis timic issues than other things. few yo look at the annual report you'll see other things from last summer including high frequency trading et f and others which i believe to be more germane to the fcc and not

to sis tim stemmatic issues. where it agains and ends, i don't know. other questions in right here. >> [inaudible] georgetown. you mention the the fact fcc is mind the jobs act rules. as you know that many businesses cannot raise capital until those rules are actually issued. what problems would there be if the fcc issued some temporary principles based rules that would be simple enough to allow people to raise capital in the environment? while meanwhile it govern you experience and time to get them right? >> i think -- good to see you, professor. thing question goes largely principle based rules. which obviously the fcc we're not used to. we are scriptive in the rulemaking. i'll point out too when we try,

if you look at the proposal on generally solicitation when they more principles baited what we get back from industry from lawyers trade groups. give us a safe harbor with three steps and checklist to ensure ourself against liability from the fcc and civilly. and so there is oftentimes a press to get that sort of prescriptive rulemaking. i quite frankly am skeptical of the work. i don't know if folks will take the ball and run with it. if there was principles based approach here. i think instead the fcc we and the commission need to get on it and get the rules proposed and finalized. the deadline was last july and we got it out at end of august.

i hone and expect there's a pathway forward and depend which way they want to go. >> okay. right here. [inaudible] i've publicly stated over the last newspaper or ten months that we need to reprose the volcker rule. i think at end of day it's legal analysis under apa. when are a proposal that is as vague as volcker proposal was that generated 18,000 rather substantiative comment letters is actually actionable for purpose of the final rule. and so that said, i can be a

practical guy if the final rule made sense and was clear. i don't any we should be left behind by theback regulators or front them either. i think the role in the process is clitly -- critically most important. so we'll see what the staff can come up, we'll see what is legally per admissible and what makes sense and see if we can move forward. >> right there. >> good afternoon. john from -- [inaudible] on the issue with the removal of credit rating that was originally proposed as separate release before money market reform got so big. since then it kind has become

died with money market reform. the next release will address the credit rating. do you foresee that as something must be gone together. can it be something that should be done separately maybe the issue removal of the, you know, ratings references contingent or not contingent whether or not -- should they be together or separate in if you have any comment. >> i don't have a strong perm preference how it comes. ilgd like to see it and vote on it and get it done with. you know, the preference of the former chairman of the staff to couple it with money market fund reform is relevant to me. i think we need to carry forward, you know, and simply get it done. the two big rules still in the books with the rating agency references in it. and i just, you know, of all the mandate in dodd-frank. i think this one hits a court

cause of the financial crisis. the failure of the rating agency and the overrelicense on ratings. and despite that we are conflict mineral disclosure. we don't have removal of the references. i adopt get it. i don't know. i haven't seen the proposal yet. i doubt it. i don't think i would push for it it's going to slow down the larger money market on reform. that was a preference last year. but i do hope regardless that it comes soon. a lot has been made about the slow pace of the jobs act implemented. in some ways it's slower than that. many of the idea and the jobs act, the best idea were ideas that fcc had gathered and considered and said it was going to adopt for years before congress acted. and then, you know, one of our concerns is that there is the jobs act, god frank the most

two-thirds of dodd-frank and other areas there's a pentup area i think you can achieve pretty broad bipartisan consensus and yet the fcc agenda seems to be subsumed by other issues. you mention the some conflict member really as. they were mandated. if you go back to the proxy access to debate or the future debate coming on political disclosure, put that different those are highly palmic issues that consumed massive amount of staff and commissioner time. at expense of a whole number of other things. what path forward to you see over the next year what is your personal view on the political disclosure? >> yeah. i agree with your statement. i think there's been a lot of distractions. i have spoken publicly about the fact we've been lead astray, as you point out highly politically charged issues. we're supposed to be a

bipartisan certainly a political agency. but clearly in setting the agenda political preferences have been made and so i disagree with them. there are things that many mandates it shocks people. i mentioned in my speech we're a third of the way through a dodd-frank final rules. all right. everybody thinks dodd-frank is done wall street has been reigned in july 2010. it hasn't happened. a third of the way through. we'll be doing it for years unless congress changes something. and so, you know, it really is incredibly important for the agency to get the priority straight to focus on what is important within the dodd-frank mandate and the jobs act mandate which are all of them. and then of course to look at the blocking and tackling issues i keep talking about. mundane things that never get you "the new york times" headline. broker dealer net capital. these are important things that is what the agency is about. and they protect investors and so i have great confidence as i

said earlier that the chairman understands issues and get us on a good path toward focusing on right priority. as two political campaign disclosure that should not one of the priorities, that is just a political wish list item. obviously the recent agenda showing it as an agenda item is unfortunate. but i can speak for myself and the commissioner we have no plans to pursue it. it should give you temporary comfort. >> another question right here. there's a mic coming to. wait one second. >> [inaudible] you and chairman have been proponent of the municipal bonds reform. where do you see municipal bond

adviser -- in other aspects of municipal bond regulation? .. markets generally we have 110

focusing on equity markets. there's a fascination with micro equity issues in its borne by the fact that we talk about writing rules about microseconds in conflict that will instantly be still the minute we get them into the federal register. so i think a focus on fixed income and a 0% interest rate environment, where we watch investors chief yield in crazy places, where they don't want to be either. they'd rather been at interest-bearing cd comes to their and junk bonds and mutinies. 2 trillion issues in corporate debt issue. that's great, but where's it going to what's going to happen when interest rates go up and there's a negative in this market, in particular small investors who don't have the dealing power of the big asset managers and others in this case. this is a big issue. if i was on fsoc, that's what i'd be focusing on incident bts, but i'm not. i think because says the

commission's interest generally i don't get the two of us which is your focus on fixed income issues generally. that will be a positive thing for the agency. [inaudible] follow-up on that question. i'm a reporter also. what about the cdc's report that came out a few months ago on whether the sec will seek the authority over issues of invisible bonds. >> obviously the report was not to seek the authority and there's so much that can be done outside of that that we should focus on the possible that we should focus on the perfect. and i don't know exactly what product will come out and they're probably would be a potential for settling inter word releases on issues and

potential rulemaking where possible, whether it's as for msrp on muni issues. if you are to to you on the advisor p. specifically, i wouldn't put it is a huge priority in the context of responding to the financial crisis. i wouldn't put this high in the lists. however, we a clarity to the market and should prioritize that because it's been hanging out their way to the. i think it's a relatively high priority agenda item for the commission this year. >> let me take you back to the 30,000-foot level one second. i think if you survey the american people, they're somehow this perception that all financial service firms are based at the three square blocks of new york punishes a small

number of firms. as you travel the can tree, you realize the financial services in the streets incredibly diverse and in our view at least, that has been a source of strength, which is job creators of every type and size have been able to go to the right kind of financial firm, small, medium-sized or large, whether spanker not named, and i said manager at the race today the financing and liquidity and risk management in all the other race they depend on financial terms that they need. i don't think the story is well enough understood. the danger in implementing roles is to begin picking winners and losers that she will reduce choices available and end up not by one single rule, but the combination of all of them suffocating the way that american entrepreneurs access

financial services. with your view on not? the maki tisha cordovan talking a lot about lately in less formal settings, but you maybe should capital market versus banking markets and what i fear coming out of the crisis, what you see in dodd-frank and e.u. directives and international bodies like ssb, fsoc domestically is the bank regulatory view of the world taking over capital markets, the notion of the riskiness safety and soundness. it sounds great when you come out of the crisis, when you've seen how can come back come in the last thing you want to disengage and risk-taking or encourage risk-taking because you got burned and whatever narrative about the crisis. but i see now, capital markets are all about risk. without this you do not capital markets. you have to venture capital at risk if you want to get at term.

money markets is a good example when you talk about civility things like capital buffer, buffer and 50 basis points. at the risk of killing the project for me and i'll come it doesn't make any sense. but this is the mindset, something we all have to watch because soon enough if there aren't enough opportunities to take risk and get a return, the economy is bad enough now. we'll see how it does after that mindset takes over. >> thank you, david. thank you, mr. commissioner for coming today. thanks for your remarks. obviously this is a global economy and financial services, especially it's important to look at it from a global and is very useful for you to remind us of the comment, especially in japanese had on the volker rule.

with respect to money markets, mutual funds, there's talk of european action here in the near future. i was wondering if you have any ice to our friends across the ocean as far as action or whatnot with respect to what the sec might be thinking of doing. >> thank you, mr. commissioner for your question. i was in london and dublin and i don't know which jurisdiction is more interested in the money market fund debate. obviously, the big industry in both of those locales. in both places i was told by industry as well as high-level government officials that the ec is on the cusp of releasing consultation paper on money market funds and they are doing so because they viewed the sec on the sideline, that everyone wanted the fcc to take the lead, but after the famous events of last august that we run the sideline and never coming back.

i'm happy to go to share these folks, which is a limited pool, no, we are actually working and i hope and expect within the first quarter to have a proposal out for comment, which is a great relief to some that are known far too many. if the international community was reading and watching, the sec and now is the preference just like fsoc says it for them to take action and not them. soon enough will have something. it will be tailored a sink to the problems that works for them and to designate as borne out by a staff study that we ordered up on the website. for the first time you have an sec narrative for the industry and other regulators to react to, to challenge, to agree with in parts and therefore will make it much better rulemaking. i would hope and expect

obviously d.c. is free to do it once, but given the factory of 2.7 trillion at the macro economic issue for us they want to read and see what we do first. >> in the back. >> hi, mark schaaf with investment is. i'm wondering, what is the timetable for request for information for cost-benefit analysis for the potential fiduciary role for retail investment advice and how do you see that issue developing this year? every life is not a mandated dodd-frank bouquet does that mean it will continue to languish? >> it can't languish if it's not mandated, so i call it the deliberative process. the proposal of the staff has worked on to bring in economic

data for our analysis is pretty well put together. i think there's some language issues we're working our way through. at the end of the day we have a new chairman here. she's trying to figure out which priorities to focus on and, you know, this would be an easy one to prioritize if she wanted to because it's further down the others. that said, and i've said in speeches. it's not mandated we should be deliberative and i'm not convinced we should do anything in this space center 913 authority. this proposal, requests for, we put out is to figure out should we do anything and if we do anything, do we have the right analysis. as things go at the commission, as important as this is to the industry, it's not the most burning priority to me.

>> let me ask one final question. a lot has been made about cost-benefit analysis and the need for regulators, particularly fcc, but certainly all regulators to do a cost analysis of the regulations they are imposing and understand the benefits. many people think of that is doing a check the box economics study after you decided what you're going to do and our frustration i think has been that really what it requires, with the regulator should do, is to find the problem they are seeking to solve it look at the range of options that would solve that problem and find the most cost efficient. it's not a question of the cost of regulation. it's about how best to achieve the desired objective and ultimately there's an obligation by a great leaders to do that. too often the sec, but many

regulators have viewed it as a compliance after rather than a driver of smart rulemaking to it wasn't a question that i respond to it. [laughter] i agree with your statement. and on this front, will give great credit to former chairman schapiro on almost a year ago, mandating that the staff put together what we called economic analysis guidance on her website that was made public last year that binds the commission staff and our rulemaking process as to how they are to engage economist at the good data, explain decision-making process. at the end of the day, and it should be about this complicated process of checking the boxes you say. a lot of times the staff to do work that they just didn't explain the choices they made. they didn't explain the data and

other things into account. said this new paradigm mandates that they do it holds us accountable. i think it's a new day for the agency. obviously there's things i could quibble with, and not negotiated document. this notion of mandatory versus discretionary as i mentioned in my defense on complex minerals and destructive resources don't make a lot of sense, but putting that aside, i think it's a new day. the role of economists has been totally changed in ages d. they're not supposed factor checklist skies they used to be, so i'm hoping for those reasons they have better rules, not just longer ones. i think we've seen some change in that regard and hopefully throughout this year as they were to knock off important priorities that this new paradigm carries forward in folks like you don't have to sue us as much.

>> we don't like suing either. we always believe with all due deference to the lawyers, it's expensive and second, ultimately what returning to achieve is to make sure they show us get a better outcome to the deliberative process to regulate and you do when the force. >> already mentioned the staff study that went out on money market funds. it is revolutionary in so many ways, david. it is untouched by policymakers. i'll confess i didn't even read it before one on the website. we put it up there. there's an appendix i can't read because it's in math. it is us putting our phd economists up against the industry's phd economists, let's hash it out. they relish this stuff internally. but it's a new day, too. again, we put the baseline we think about us in the fourth with rulemaking, allowing folks to challenge it to make sure we

got it right, that we don't regulate based on false narratives as i talked about with dodd-frank. >> one of the first things i time my daughter was with both ways before you cross the street. when you don't do a study that's been done on money fund and we don't agree with everything in their, it's literally crossing the street before you look both ways. it produces a train ride and i think we will soon know if 2013 for the securities exchange commission will be here for many of the long awaiting the shoes that move on in a way that brings commissioners together for your project here are otherwise, but we are certainly hopeful it will be. i know that's the spirit of your remarks today and it greatly appreciate her willingness to come lay out the agenda with us cannot give you the final word. >> happy to be here and staying patient. it's going to be a busy year. the personalities are right, priorities are important.

but we need engagement by commenters. we need data. need to get these rules right. thanks for having me here. >> commissioner dan gallagher. [applause] >> got a president obama has released proposals for gun violence, the will continue on the next "washington journal."

>> why did you read a book about your experience? >> guest: it was an important period of history. i thought the ftse's perspective should be brought to bear. there have been other for the crisis they were not completely accurate, especially in terms of what we did what i did, so it wasn't for the historical record to present our end also currently for people to understand different policy choices, different policy options, disagreements and if we want to prevent another crisis or not mean again, i felt the public is both needed to engage more on financial reform,

educate themselves better, make an issue with elected officials. i have some policy recommendations at the end that i hope people will look at and take seriously. >> the head of fema says because of budget constraints come the state should expect the african federal aid after disaster. craig fugate spoke at an event hosted by the national council for science and environment. this portion included remarks at the united nations disaster risk reduction representatives. it's a little more than an hour. [inaudible conversations] >> good morning, everybody. welcome to the 13th national

conference on science policy and the environment, disasters and environment. my name is peter saundry come executive director for science and environment and it's my distinct honor to be the master of ceremonies for much of this conference. thank you for coming. lots of people are still outside. encourage them to come and settle themselves down. so super storm sandy in the midwest and impact on agriculture, bodleian flyers, the earthquake, tsunami and it clear reactor accident in japan last year, haiti earthquake. the list is long and worrying. in 2011, we had more disasters

in the united states costing over a billion dollars. in fact, even more disasters, but not quite as many in 2012. the drought is super storm are hugely expensive. so disasters are happening with greater frequency, greater severity and absolutely with much, much greater cost. so we are here over the next three days to work across traditional boundaries to connect scientists as part tichenor's, with policymakers from the international to the local level, with conservation organization, with corporations and it is our belief that only, i want to emphasize only by

working together can we solve these immense challenges that face us. and the costs are not simply financial, but as we tragically know, and many, many lives are lost in these disasters. and so, if we can come up with just one useful idea in the next three days, the benefit, even if it's only one life saved, it's worth it. so i want you to recognize why we are here. a number of housekeeping advance. first of all, there are around many people with green stripes at the bottom of their name tags. these are the stats. these are the amazing people

that work with me, who i am honored to call my colleagues. they are fantastic people. they will help you no matter what problem you might have and every conference that we have, there's always some issue that comes up that we could never have conceived of, never heard of before. what do your utmost to help you whatever comes to. inside the conference program is a map. this is very enough and congress are at the rayburn building and i still get lost. many of you have been to this conference before. some of you have not. you know exactly what i mean. it's a wonderful building, absolutely amazing, but this is wonderful diagonal and turns. there are times when i think it should be the international trade maze as opposed to

building. to find things, we recommend assertive raffle ticket. to take it to the environment and clean energy not zero ball will be taking place on monday evening after the non-duration. to win, you need to put your name here and phone number would be very helpful. we will do that dry tomorrow evening before the memorial lecture and if you want to win, put your name and hand that in the registration area. silence cell phones. i was actually doing an interview this morning. cameras are rolling, second question asked, my own cell phone began to ring in my pocket.

so don't be embarrassed the way i was embarrassed this morning. turn off your cell phone. on your seats are question cards. the really two questions here is you write them down. so be brief, the legible. if you write like me, your question won't get asked because they will be able to read richer for it down. so try to be better to me. try to write legibly in brief. when you have a question, staff will, and collect the question. will return to the moderator said we had anybody who's been to this conference before, you know how we prayed and journalists and reporters, people arrived so is fantastic at drying out. we try to not have power points. few places still see some slides. we try to make this a dynamic,

interactive conference. so so you said no cards. we also have in this orange sheet questions for today. fill out the questionnaire. the things in which we can improve, we really appreciate hearing. so fill out questioners submit them at the front. there are probably housekeeping matters i have forgot, but that's okay. i want now to turn to our opening keynotes and we are extremely lucky. we are quite open with an international and domestic perspective. we have two individuals that bring both the found, i don't want to see anything weird about their ages, to bring considerable experience at all levels and sometimes you get great speakers who are new to the subject. this is not the case here.

these two individuals understand the issues involved as well as anybody in the world. so we are really lucky to have them. they are both going to give remarks. the first is going to be margareta wahlstrom. they were going to have craig fugate. after they've given their remarks, alec of your questions and come to the podium and asked them some of your questions. we will begin with margareta wahlstrom come united nations assistant secretary for disaster risk reduction. she is 30 years experience in the field, humanitarian relief, institution building. she asked out with more disasters, not just environment so, the bradley humanitarian disasters than anybody else. so she has great respect for.

so margareta, if you will come to the podium and when she is finished, i will briefly introduce mr. fugate and after his remarks we will take questions. thank you. caught mark >> good morning. i must say that i'm really honored and very impressed to has come speak to this audience. i know you are a powerful group of scientists. i think a lot of students today here as well and so we have the advantage of hope for the future today. the one idea to come up with after three days were, let it be three ideas for the future.

so i'm very honored of course to speak your today with craig phuket, who is an extraordinary part haitian or and you will very impressed by what he will tell you today. i wanted to start with just a quote that i'm a little bit engineering for the benefit of this audience. this conference is at a crossroads in human progress. come on direction mice my scanmaker results of the mixture every opportunity and the other direction, the community can change the course of events by reducing suffering from disasters. action is urgent. we need this. this is a document 20 years ago. so let me say that i'm really very pleased you have made

disasters of this year's conference. another national council for science meets every year in this setting and you pick themes and i think the opportunity for us to bring together the practical disaster impacts that the science in the insight is very opportune. i will also like to use the theme of your conference, science preparedness and resilience as the framework for my short comments this morning. science has for many decades looked at disasters as a scientific issue, well before the international strategy of the reduction was established, scientists had worked for a minimum of four decades to get the attention to the accru